Monday, December 8, 2014

Sorry, Europe, Kolomoisky gets a monopoly over Ukrainian skies - Fort Russ

The Ministry of Transport of Ukraine has developed a new set of regulations for airlines obtaining the rights to fly over Ukraine. The document was registered at the Ministry of Justice on November 18.

The essence of the new rules is the following. First, 50% of airlines conducting international flights, must be owned by citizens of Ukraine. Secondly, in order to obtain the right to operate international flights, the airline must first conduct domestic flights within Ukraine for a year.

But that's not it. Besides these conditions, an airline must first win a tender conducted by the Ministry of Transport. It will take into account such criteria as a number of flights performed during the last three years, the fleet size and the amount of taxes paid.

The Ministry of Transport argued that the new rules came from the best of intentions: to protect the interests of domestic airlines and develop internal air routes.

Technically the officials seem to be telling the truth - though not all. It's really about a protection of domestic business, but more precisely - very specific businessmen.

For example, in 2013, the share of domestic airlines in Ukraine accounted for 63.5%. Of that 49,8% belonged to "International Airlines of Ukraine," owned by the oligarch Igor Kolomoisky. Another 5,6% belonged to the airline "Roza Vetrov", which is also associated with Kolomoisky. He is also the owner of the airline "Dnepravia".

In other words, out of 63.5 percent of the market owned by domestic airlines, at least 55,4% is owned by Kolomoisky. And this therefore means that the protection of the interests of 'national carriers' is 80% protection of Kolomoisky's interest.

In addition, since 2014, the Ministry of Transport is headed by Denis Antonyuk, who previously worked for 11 years ... at "International Airlines of Ukraine" owned by Igor Kolomoisky. What an amazing coincidence!

Complete story at - Sorry, Europe, Kolomoisky gets a monopoly over Ukrainian skies - Fort Russ

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